ZTE 0763

Re: ZTE 0763

Postby winston » Wed Jun 13, 2018 9:41 am

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Bad news for ZTE: US Senate plots to crush Trump’s deal as Republican Senator Bob Corker rails against trade action

The US senate took a successful step towards reversing Trump’s ZTE deal on Tuesday, while an attempt to help Congress block his trade actions failed. Meanwhile, ZTE is to start trading stocks again on Wednesday

Source: SCMP

http://www.scmp.com/news/china/economy/ ... settlement
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Re: ZTE 0763

Postby winston » Wed Jun 13, 2018 12:59 pm

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Oct 2017

ZTE Corp (763 HK)

Key Beneficiary Of 5G Era

With improving progress in 5G field tests in China and other key overseas markets, the 5G telecom capex cycle is likely to arrive by 2019 as expected.

Telecom equipment makers with ample technology reserves in 5G, eg ZTE, should directly
benefit from the impending 5G investment, with additional 5G revenue to flow into ZTE’s 2019 results.

Maintain BUY and target price of HK$32.70, based on 28x 2018F PE, which is not excessive compared with the previous weaker 4G capex cycle.

Source: UOBKH

https://research.uobkayhian.com/content ... a3f80c104d
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Re: ZTE 0763

Postby winston » Wed Jun 13, 2018 1:00 pm

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<Research Report>Jefferies Adjusts ZTE (00763.HK) Target to $14.41; Rated Underperform

Jefferies mentioned in its research report that ZTE (00763.HK) had officially signed a settlement agreement with the US DoC and resumed trading on 13 June.

The company was expected to get back into business next week and the aggregate cash penalty was confirmed at US$1.0 billion, rather than its previous estimate of US$1.3 million.

ZTE was rated Underperform at the target price $14.41, slightly adjusted up from $14.35.

Source: AAStocks Financial News
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Re: ZTE 0763

Postby winston » Wed Jun 13, 2018 3:13 pm

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New ZTE regime could climb out of big hole

by Robyn Mak

HONG KONG (Reuters Breakingviews) - ZTE is back to life, but faces a tough rehab. The Chinese telecommunications company lost nearly $3 billion in market value after its reprieve from a death sentence imposed by the Trump administration.

That suggests concerns about a clean management sweep. If, however, ZTE can find decent leadership and stay out of trouble – big ifs, for sure – a 5G rollout holds real promise.

After confirming a settlement announced earlier by the U.S. Department of Commerce, ZTE’s shares resumed trading again on Wednesday for the first time in two months. They promptly tumbled about 40 percent in Hong Kong and the maximum permissible 10 percent in Shenzhen.

Though authorities reversed their ban on American companies selling their wares to ZTE, the lifeline thrown to the smartphone and network equipment maker will take its toll.

ZTE must pay a $1 billion penalty and put another $400 million into escrow in case of further violations. It also agreed to overhaul its executive team and board. In the meantime, ZTE almost certainly lost contracts and suffered brand damage that will erode the bottom line.

The latest deal nevertheless ends another embarrassing saga for ZTE, assuming Congress does not step in to block it.

In 2016, ZTE confronted a similar crisis when it was caught skirting U.S. sanctions on Iran and North Korea. The financial penalty again looks manageable: ZTE, 30-percent backed by Chinese state-controlled enterprises, had over $4 billion of cash on hand as of March.

A leadership vacuum and the broader reputational hits could be troubling. ZTE hasn’t said how it plans to replace as many as 40 members of its senior management team. Meanwhile, the company will need to move fast to regain confidence from suppliers and customers.

There is still a chance for a turnaround, though. As the world’s fourth-largest telecom equipment provider, and China’s second-largest, ZTE plays a pivotal role for operators racing to upgrade to 5G ultra-fast wireless technology.

Between the time of the first sanctions violations pact and when the company was caught again earlier this year, its Hong Kong-listed shares doubled. If investors can tolerate the risk, there may yet be fresh reward.

Source: Reuters

https://www.reuters.com/article/us-zte- ... SKBN1J90MH
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Re: ZTE 0763

Postby winston » Thu Jun 14, 2018 6:45 am

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White House opposes Senate measure to block Trump's deal to save China's ZTE

The White House opposes a Senate proposal to thwart President Donald Trump's deal with Chinese telecommunications company ZTE.

Senators included language in a defense authorization bill to stop the agreement.

Trump moved to revive the company, which was blocked from buying U.S. parts.

by Jacob Pramuk

Source: CNBC

https://www.cnbc.com/2018/06/13/white-h ... -deal.html
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Re: ZTE 0763

Postby winston » Thu Jun 14, 2018 7:26 am

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ZTE moves ahead with US settlement steps as investors wipe US$3 billion off market value

ZTE moves to implement US settlement measures but investors punish company on expectations ban could force company into a loss

Source: SCMP

http://www.scmp.com/tech/china-tech/art ... executives
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Re: ZTE 0763

Postby winston » Thu Jun 14, 2018 8:54 am

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Even With New Deal, ZTE Is Damaged Goods

Security and reputational concerns surrounding ZTE hard to dispel

By Fan Yu

As of the end of first quarter 2018, ZTE had an 11 percent smartphone market share in the United States, good for fourth place behind Apple, Samsung, and LG, according to Counterpoint Research.

As of today, ZTE’s smartphone shipments have completely halted, and it could take months for ZTE to ramp up production and ship phones again.

“When telecom companies buy infrastructure equipment, they need to feel assured that the company will be around in a few years to maintain that equipment”.

The price of ZTE’s bonds due in January 2020 crashed to 93.78 on June 8 from more than 101 as recently as mid-April.




Source: Epoch Times

https://www.theepochtimes.com/even-with ... -238084345
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Re: ZTE 0763

Postby winston » Thu Jun 14, 2018 10:21 am

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ZTE Proposes to Apply RMB30B, USD6B Credit Facilities from Banks

ZTE (00763.HK) (000063.SH) announced that the company proposed to apply Composite Credit Facilities of RMB30 billion from BANK OF CHINA (03988.HK) and Composite Credit Facilities of USD6 billion from China Development Bank, Shenzhen branch.

Source: AAStocks Financial News
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Re: ZTE 0763

Postby winston » Tue Jun 19, 2018 8:12 am

US Senate passes bill that could kill Donald Trump’s ZTE deal – but the president isn’t done yet

Trump’s plan to meet with lawmakers on Wednesday emerged on Monday afternoon, as the Senate was poised to pass a bill that would help nail ZTE’s coffin shut

Source: SCMP

http://www.scmp.com/news/china/economy/ ... s-zte-deal
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Re: ZTE 0763

Postby winston » Tue Jun 19, 2018 10:57 am

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<Research Report>Nomura Cuts ZTE (00763.HK) Target to $16; Rated Neutral

ZTE (00763.HK) had overcome a settlement with the US, Nomura said in its report, yet the revenue growth was expected to be unavoidably affected due to nearly operation shutdown since mid-April, Nomura said.

The research house forecast the business recovery will take longer time, especially when handset market shares may be taken away during the period.

The target price was trimmed to $16 from $27 with rating kept Neutral.

Nevertheless, the research house said ZTE is still seeing chances in 5G era although near-term uncertainty remains in place.

Source: AAStocks Financial News
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